x PhoneArena is looking for new authors! To view all available positions, click here.
  • Home
  • News
  • HTC-Apple licensing deal to benefit Android manufacturer

HTC-Apple licensing deal to benefit Android manufacturer

Posted: , by Alan F.

Tags:

HTC-Apple licensing deal to benefit Android manufacturer
Back in November, Apple and HTC agreed to a 10 year licensing pact that also resolves all litigation between the two companies. According to HTC China President Ray Yam, the deal really benefits HTC. Yam says that instead of focusing on litigation against Apple, and trying to find workarounds that would allow HTC's devices to be sold in the face of alleged patent infringement, the Taiwan based handset manufacturer could focus on innovation.

HTC China President Ray Yam

HTC China President Ray Yam

Wall Street brokerage firm Goldman Sachs said the agreement will prevent HTC from getting shut out of the U.S. market. With the ability to use Apple's IP portfolio, HTC engineers could give the company the chance to move ahead of Samsung, Motorola and other Android manufacturers by having features and creating user experiences that HTC's rivals won't be able to match. As a result, Goldman Sachs sees HTC picking up smartphone market share globally.

Not all investment houses see the pact as being the major event that will turn HTC around. Britain's Barclays Plc says that unless Apple and HTC use the agreement to work on handsets together, the agreement will have no effect on the Taiwan manufacturer's current problems which include lost market share in the U.S. and tough competition in China's smartphone market.

"HTC continues, however, to face the same structural problems it had before the settlement, such as lost market share in the U.S. and intensifying competition in China’s smartphone market. Unless HTC and Apple build further business relationships or cooperate on mobile devices, Barclays believed the settlement remains a non event in terms of HTC’s fundamentals."-Barclays

"We believe that by being able to access Apple’s patent portfolio, HTC will be able to release part of its engineering resources that have been tied up with work-around solutions. This could potentially allow HTC to offer smartphone products better than those of its Android peers in terms of features and user experience, which would help the company pick up marketshare.-"Robert Yen, Goldman Sachs

"HTC wasted too many resources on the Apple lawsuits, which were seen as “a sword hanging over our heads. The biggest benefit to us is that we can put more energy into innovation, which is more important than anything else for a technology company."-Ray Yam, President, HTC China

source: FocusTaiwan, DroidDog via AndroidAuthority

32 Comments
  • Options
    Close




posted on 01 Jan 2013, 23:10 18

1. rusticguy (Posts: 2826; Member since: 11 Aug 2012)


Sleeping with the enemy never has helped.

posted on 01 Jan 2013, 23:40 2

3. Droid_X_Doug (Posts: 5620; Member since: 22 Dec 2010)


It was the lesser of two evils. Now HTC is free of worrying whether it will be able to sell its toys and focus on building the best toys it can build.

At some point down the road, many (if not all) of the patents that Apple has used in its fight with HTC will be invalidated and HTC will need to decide whether to continue paying the blood money to Apple. But that is for the future. Now it needs to focus on building the best toys that it can build.

posted on 01 Jan 2013, 23:48 1

5. MeoCao (unregistered)


It's still to be seen what technologies HTC can use to compete with other Android OEMs.

I still don't see anything from the agreement will help HTC except avoiding Apple's bullying.

posted on 01 Jan 2013, 23:54 2

6. Droid_X_Doug (Posts: 5620; Member since: 22 Dec 2010)


"I still don't see anything from the agreement will help HTC except avoiding Apple's bullying."

And that is what HTC bought with the agreement - avoiding Apple's bullying. HTC doesn't have the resources that Sammy has.

posted on 02 Jan 2013, 00:06 1

7. MeoCao (unregistered)


The article also mentions some Apple's technologies that can help HTC "picking up smartphone market share globally"

posted on 02 Jan 2013, 00:19 1

9. Droid_X_Doug (Posts: 5620; Member since: 22 Dec 2010)


But no details have been provided. I doubt that Apple gave anything away to HTC. More like HTC bought freedom to operate without the sword of iDamocles hanging over its head.

posted on 02 Jan 2013, 00:46

12. MeoCao (unregistered)


From previous reports HTC can use the whole Apple's portfolio except design patents.

So HTC obviously can use pinch to zoom, rubber banding... but is there anything more substantial?

posted on 02 Jan 2013, 00:53

14. Droid_X_Doug (Posts: 5620; Member since: 22 Dec 2010)


"but is there anything more substantial?"

Probably not. HTC was held hostage over arguably bullish*t patents, but they didn't have the resources to fight, so they settled.

posted on 01 Jan 2013, 23:43

4. MeoCao (unregistered)


+1 dude

posted on 02 Jan 2013, 01:50 3

26. vladd100 (Posts: 56; Member since: 12 Jul 2012)


sleeping with the enemy has always helped ,it's a 007 theory.

posted on 02 Jan 2013, 02:10 2

27. MeoCao (unregistered)


lol, very nice theory, but you have to sleep 007 way not HTC way.

007 is always above the enemy (girls or not) while HTC allows the enemy climb upon themselves.

posted on 02 Jan 2013, 08:04

31. Aeires (unregistered)


One minute they are making public statements of taking apple down with their LTE patents, the next they are signing a ten year agreement. Talk is cheap, HTC the cheapest.

posted on 01 Jan 2013, 23:16 5

2. tiara6918 (Posts: 1364; Member since: 26 Apr 2012)


I like the idea that htc will benefit ahead of its competitors but I really hate to see them partnering up with a rotten fruit

posted on 02 Jan 2013, 00:59 2

16. Mxyzptlk (Posts: 3337; Member since: 21 Apr 2012)


Partnering is beneficial for both parties. This is the way it should be done rather than a company infringe on someone's patents.

posted on 02 Jan 2013, 01:03 2

17. rusticguy (Posts: 2826; Member since: 11 Aug 2012)


Yes like M$ partnered with Novell to kill LINUX :)

posted on 02 Jan 2013, 01:07 4

19. Droid_X_Doug (Posts: 5620; Member since: 22 Dec 2010)


Unfortunately, some of the patents that are the subject of the extortion agreement are getting ruled invalid on further examination by the USPTO.

posted on 02 Jan 2013, 01:25 2

24. joey_sfb (Posts: 2782; Member since: 29 Mar 2012)


I don see how it would benefit me to pay a bully. I rather stick with samsung that fight the bully. This is my choice no one has to agrees with it.

posted on 02 Jan 2013, 00:14 4

8. BadAssAbe (Posts: 434; Member since: 22 Apr 2011)


6-8 months later, HTC Designs/invents New product/idea called "Idea A"
Apple gets 10 percent share because they claimed apple invented it first
2 years later, iPhone 7.5 Has New Magical Feature called "Idea A"

posted on 02 Jan 2013, 00:32 4

10. rusticguy (Posts: 2826; Member since: 11 Aug 2012)


Do you know APPLE has patented WINDMILL? They are patenting just about anything and everything irrelevant to them and a time will come when they will just be making money out of suing every other company.

http://appleinsider.com/articles/12/12/27/apples-wind-turbine-technology-uses-heat-not-kinetic-energy-to-generate-electricity

So now they will sue GE/Steam turbine manufacturers etc soon (in US of A of course) ? Looks like all BRIC nations have to oppose US of A at WTO.

posted on 02 Jan 2013, 00:56

15. Droid_X_Doug (Posts: 5620; Member since: 22 Dec 2010)


Calm down. Just because Apple has a patent, doesn't mean they can hold everyone up for royalties. Sammy's attorneys blew their case by not mounting a prior art invalidity defense. Sammy needs to push the re-set button.

Same for Apple's windmill patent. If there is prior art, it generally tends to invalidate a patent.

posted on 02 Jan 2013, 01:06 2

18. rusticguy (Posts: 2826; Member since: 11 Aug 2012)


Roche had one patent invalidated in India for a drug and it was moved to generic class under pressure from a NGO. More and more of public pressure has to come against these stupid acts because politicians /govt of the day play hand in glove with corporates world over and it's only public pressure that make things happen. People are now opposing M$ takeover of Egypt in Egypt.

posted on 02 Jan 2013, 01:08 1

20. Droid_X_Doug (Posts: 5620; Member since: 22 Dec 2010)


How is MS taking over Egypt?

posted on 02 Jan 2013, 01:10 1

22. rusticguy (Posts: 2826; Member since: 11 Aug 2012)


Bribing govt of the day into buying M$ crap. Public is protesting against that. Here's the link:
http://dailynewsegypt.com/2012/12/28/open-source-movement-to-protest-microsoft-deal/

posted on 02 Jan 2013, 01:20

23. MeoCao (unregistered)


MS is doing that everywhere in 3rd world to fend off Linux and open source software.

posted on 02 Jan 2013, 06:53

30. gazmatic (Posts: 572; Member since: 06 Sep 2012)


i was wondering how i was going to suggest that to phonearena.... where is the "tip us" section?

i know it has nothing to do with "phones" per se but i could use this to charge my devices

posted on 02 Jan 2013, 00:38 1

11. GALAXY-STORM (Posts: 328; Member since: 13 Oct 2012)


They didn't have a choice except to deal with apple as they lack the resources like samsung to stand up and fight toe to toe against them.
Htc better watch out against ipatent bully.

posted on 02 Jan 2013, 00:49

13. rusticguy (Posts: 2826; Member since: 11 Aug 2012)


Samsung is proving to be a big PITA for apple :)

posted on 02 Jan 2013, 01:09 1

21. Droid_X_Doug (Posts: 5620; Member since: 22 Dec 2010)


In more ways than patents. Sammy is actually offering consumers toys that they want to buy.

posted on 02 Jan 2013, 01:43

25. ray77 (Posts: 121; Member since: 17 Nov 2012)


their went to the dark side of evil an the empire strikes back again

posted on 02 Jan 2013, 04:31

28. maxspecs (Posts: 31; Member since: 29 Aug 2012)


@phonearena i need your experience and recommendation, I am a man who cares only about processor, cpu, gpu and i want the cheapest phone possible to provide that. so would please make an article about cheap but yet powerful phones with a list in ascending order for increasing price and processor power. sorry for troubling and have a happy new year!!! :)

posted on 02 Jan 2013, 06:48

29. gazmatic (Posts: 572; Member since: 06 Sep 2012)


htc ALREADY offer better android devices than its competitors.... they just always seek to handicap them somehow... they never release a complete power phone... it either lacks sd card, removable battery, lte, weak battery, etc

htc should just listen to what consumers want and do it... screw carrier restrictions... if the phone is worth it people will just buy it outright...

sigh... so far only samsung releases "complete" android phones...

now i gotta wait on the xperia z/zl to see sony's offers... i bet they are going to screw me with their overpriced propriety stuff... this is why i didnt buy a vita

kinda sucks that i'm more excited about blackberry 10 than i am about anything(besides tizen and jolla)

posted on 02 Jan 2013, 09:51

32. lubba (Posts: 1310; Member since: 17 Jan 2011)


Too many products, too fast innovation, not allowing themselves time to build on the good products they have. At the end, it will be their downfall when ideas run out. Maybe good thing Apple and MS suing. Can't let these OEMs run amok.

Want to comment? Please login or register.

Latest stories